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��0������� ��3��@�����������8�=��>����u�ʚ;2N��ʚ;�g��4AdAd�0����������p�pp�@<�4!d!d�
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0L��<������___PPT9��z���%�D��������P��������4�����8�����4�����8�������!�0��������D������?��%O��=�Ww�2��SENGINEERING PROFESSION ACT 2000NEW GUIDELINE SCOPE OF SERVICES AND TARIFF OF FEES�TT�S	���
BACKGROUND

Professional Engineers Act No. 81 of 1968

Government Notice No R1113, June 1982   Tariff of Fees for Professional Engineers Act published by Department of Community Development.

Various amendments and new acts   the responsible Department becomes Department of Public Works.

A prescriptive process   fees prescribed by the Department.

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	)*	�?��	A NEW ERA�

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Built Environment Act of 2000
Engineering Profession Act of 2000
Section 34(2)
	The council must annually, after consultation with the voluntary associations, representatives of service providers and clients in the public and private sector, determine guideline professional fees and publish those fees in the Gazette.

Responsibility for establishing and reviewing fees now rests with ECSA
ECSA has duty to consult with all stakeholders, including:
	-	organs of state
	-	voluntary associations
	-	service providers

ECSA established its Fees Committee in 2002 representing  : DPW,  DWAF,  SANRAL,	SAPOA
	DPW (Eastern Cape),   SAACE,   SABTACO



��ZOZ�Z�ZCZWZ+ZZP�(" �,�		�5��ECSA FEES COMMITTEE ACTIVITIES�&  �	���
In March 2002 the existing fee scales were updated.

SAACE and SABTACO tasked with producing new draft guidelines and the Framework describing the basis of the fees for consideration by CBE

Draft published for comment on ECSA website December 2002

Comments considered and amendments incorporated 3 February 2003

Final documents approved by ECSA Executive Committee 
	6 February 2003

New Guideline Scope of Service and Tariff of Fees to be published March 2003
�\ZqZZMZZ���	�Y#��3PREFERENTIAL PROCUREMENTPOLICY FRAMEWORK ACT 2000�44�3	���
One of the most profound Acts which will fundamentally affect the entire construction industry   all consulting engineers must take careful note and understand the implications.

The Act lays down a framework within which every organ of state (defined) has to determine and implement their preferential procurement policy.

The preferential system is simply the 90/80 preferential points system.

The Act clearly defines HDI and clearly seeks to minimise  fronting.


�6Z�Z��*�				�Z$��jPREFERENTIAL PROCUREMENTPOLICY FRAMEWORK ACT 2000& & �66�5	��c
	Regulation 2 stipulates the following:

	Application

	2.	(1)	Despite anything to the contrary in any law, 			these regulations apply to organs of state as 			contemplated in section 1(iii) of the Act.
		(2)	An organ of state contemplated in sub-regulation 		(1) must, unless the Minister of Finance has 			directed otherwise, only apply a preferential 			procurement system which is in accordance with 		the Act and these regulations.

		(3)	An organ of state may deviate from the 			framework contemplated in section 2 of the Act 		in respect of a pre-determined tariff based 			professional appointments.

�B)ZZ:Z+9�d	�[%��jPREFERENTIAL PROCUREMENTPOLICY FRAMEWORK ACT 2000& & �66�5	���The implications of the above appear to be enormous:

The Act takes preference over all other Acts

Every organ of state is bound by law to apply the Act

In making professional appointments every organ of state must either call for tenders or is bound by law to apply the previously agreed and published fee tariffs I.e. they may not, by law, reduce our fees.

	SAACE is currently obtaining legal advise and opinion on the above statements and will keep Members informed.

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" Zo�" ZZZ54o ��	�6��FRAMEWORK DOCUMENT��	��A
	Purpose is to describe the basis on which guideline professional fees are to be established and to set down a method for the annual review of the guidelines

Describes the structure of the Guideline documents.

Motivates the basis for the establishment of percentage fee scales.

Provides a detailed motivation for the establishment and calculation of time based fee scales.

Provides a method for calculating the actual hourly rand value of time based fees, using salaries in the Public Sector as a basis.

Provides a standardised method for the annual review of the fees.

�\Z�Z��
" Z�" ZA�N�		V	
	+	�8��.GUIDELINE SCOPE OF SERVICES AND TARIFF OF FEES�//c�.	���	INDEX
Fundamentally based on SAACE s Appendix B to the Form of Agreement but re-arranged and revised

NOTE:  This is a Guideline Scope of Service and Tariff of Fees and is NOT a Form of Agreement.

	GENERAL PROVISIONS�
Repeal and transition	
Definitions	
Short title	
GUIDELINE SCOPE OF SERVICES
NORMAL SERVICES : Consulting engineering services
Report stage	
Preliminary design stage	
Design and tender stage	
Working drawings	
Construction stage	
�PZ_ZZ`ZZ1ZZ�ZCC`CC?CCCcccccc#"#c1cc
cccccccccc�2		�	��B��INDEX& & ��	��ADDITIONAL SERVICES
	-	Additional services pertaining to all stages of the project
	-	Construction monitoring	
	-	Site staff not appointed	
	-	Quality assurance	
	-	Lead consultant	
	-	Engineering management services	
	-	Targeted procurement	
	-	Mediation, arbitration and litigation proceedings and 	similar services	

APPLICATION OF TARIFF
Application of tariff of fees	

FEES FOR NORMAL SERVICES
Civil and structural engineering services pertaining to engineering
Projects
Civil engineering services pertaining to building projects	

�`�qZ,Z�qZZZ�qZ�ZZcc>cccccccccc#ccccLcc#"###"C#"D#"C�	<					!		6		5	e	>�C��INDEX& & ��	��Structural engineering services pertaining to building projects	
Mechanical engineering services pertaining to engineering projects	
Electrical engineering services pertaining to engineering projects
Mechanical engineering services or wet services pertaining to building projects
Electrical engineering services pertaining to building projects
Electronic engineering services	
Services provided partially or in stages	
Fees for additional services	

TIME BASIS FEES
	-	Time basis fees	

EXPENSES AND COSTS
	-	Expenses and costs	


���ZZ�qZZ�qZZZZZ@#"�#"O#"?#" #")#"#"#"#"#"#""���	�	�					�;
��HIGHLIGHTS�0
 �	���A number of subtle but important changes have been made when  compared with the SAACE Document

READ it carefully!   some examples

Clause 5 (3)  -  Advise the Client on regulatory and statutory requirements, need for environmental management (EIA s)

Clause 8 (15)  -  Provision of record drawings more clearly defined.

Clause 8 (17)   consulting engineer responsible to ensure that contractor assumes responsibility in terms of OHS Act

Clause 9 (17)   community liaison and facilitation now defined as being an additional service

Clause 10   construction monitoring now in accordance with SAACE   NDPW will not accept


���ZwZZEZZ-ZZ��C�2�		x	�G��HIGHLIGHTS& ..��
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Clause 13   Lead consultant clearly defined

Clause 14   new clause introduced to deal with Engineering Management Services not to be confused with Project Management

Clause 15   new clause dealing with targeted procurement which is defined as additional service

Clause 17   application of the tariff   most important new clause describing circumstances under which fees can be increased or decreased. Must be carefully read.




�l�Z�qZZZ�Cc �,�		�J��"APPLICATION OF THE TARIFF OF FEES�##c��P
17.(1)	The guideline tariff of fees contained in this Schedule 			applies in respect of the services set out in clauses 4 			to 16 (both included).

	�	(2)	The client should remunerate the consulting 				engineer, for the services rendered, on the basis of 			clauses 18 to 29 (both included).  In cases where the 			client and consultant have agreed that clauses 18 			to 27 (both included) are not applicable, payment 			shall be on the basis of clause 28 or as agreed 				according to clause 17(4).

		�(3)	The client shall reimburse the consulting 				engineer for all expenses and costs incurred in terms 
			of clause 29 in performing his services, irrespective 
			of whether fees are charged in terms of clauses 18 to 27 		(both included) or clause 28, as well as for all costs 			incurred on behalf, and with the approval, of the client.
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	9	7	;�K��DAPPLICATION OF THE TARIFF OF FEES& �##�"	���(4)	Should the tariff of fees contained in this Schedule 	be found to be inappropriate to any project, works, 	services or part thereof, the client and consulting 	engineer may agree a fee deemed more appropriate.   	Contributing factors to be taken into account, although 	not limited to, may include all or any of the following:

(a)	Complexity:  Where the works call for the 		application of new, unusual or untried 			techniques or designs or application of 			complex control circuits, systems or processes 		or excessive complexity of the whole or part of 	the works.

(b)	Repetition:  Where the works are of a non-		repetitive nature with individual elements each 	requiring original design.

(c)	Small projects:  Where projects are small in 	monetary value and the tariff of fees for normal 	projects does not compensate the consulting 	engineer reasonably for the services to be 	rendered.

��LZ7�" ZZZ^cccccccccc�ccc�cccc�cc-cccc��9		1	4	3	8	8	.	'	(	/		-	
	.	0		1	1	,	+	�M��DAPPLICATION OF THE TARIFF OF FEES& �##�"	��i(d)	Cost of the works:  Where the cost of the 		works 	is abnormally low relative to the services 	required from the consulting engineer.�

(e)	Time duration: Where the works are executed 	over appreciably shorter or longer than normal or 	realistic time periods during any of the stages 	defined in clause 4 to 8 (both included).

(f)	Level of responsibility, liability and risk:  Where 	unusually high demands in respect of these 	factors are expected to be carried by the 	consulting engineer.

(g)	Level of expertise, qualifications, skills and 	experience required of the consulting engineer 	for the services.

����" ZZ��" ZZ��" ZZv�" ZZZccc
cccccc@ccccc�ccccc�ccccKcc
cccccc�.		+	Y	2	0	c	+	*		3	/	�N ��DAPPLICATION OF THE TARIFF OF FEES& �##�"	���
(5)   	Agreement on any adjustment of or special fees should 	be reached at the time of the engagement of the 	consulting engineer or as soon after circumstances 	warrant such as practically possible, but in all cases prior 	to the consulting engineer executing services which 	may 	be affected.

(6)	Where the normal services relate to more than one of 	the fields of consulting engineering contemplated in 	clauses 18 to 25 (both included), namely civil, structural, 	mechanical, wet services, electrical or electronic 	engineering services, a separate fee for services in each 	field should be calculated in accordance with the relevant 	clause.

�Z�ZZZpccfcc,cccc�c	cMcc�R	6	0	3	=		1		G	5	<	3	:	;		�O��DAPPLICATION OF THE TARIFF OF FEES& �##�"	���(7)	Where at the instance or with the consent of the client 	the works are undertaken on separate non-contiguous 	sites, continuity is interrupted or are unusually 	fragmented or are constructed as separately documented 	phases or sections, the fee for normal services is:

(a)�	the sum of the fees calculated separately for 			each site, contract, phase or section as if they 			were separate works;  or
�
(b)	the fee agreed to between the client and the 			consultant and which 	fee lies between the fee 		calculated on the total cost of the works and	 		the sum of the fees contemplated in clause 			17(7)(a).

(8)	The fee for services provided in the report stage is 	calculated on a time basis.

NOTE:  There is no credit given on later stages.
�



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				-	/	-		+			:	2		�P��FAPPLICATION OF THE TARIFF OF FEES& �$$�#	���
(9)	The following fees may be claimed after each stage of 	services or monthly or as agreed between the 	consulting engineer and the client:

(a)	Percentage fees determined on the basis of the 		cost of the works prevailing at the time of the 		fee calculation and pro-rata to the completed 			services.

(b)	Time based fees applicable when the services 			were rendered.

(10)	Disbursements as set out in clause 17(3) may be 	  	claimed monthly.
���Z�ZZCZLZc;cc&cc	cccc5ccRccccc(cccccIccc��;	-	X	0	.	<		5		
�Q��FEES FOR NORMAL SERVICES��	���
Clause 18 to 25   Fee Tariffs

Generally between zero (large projects) and 14   15% (small projects) higher than the old R1113 (2202) fee scales.

Generally at least equal to the SAACE 2002 fee scales.

Fees for small projects on a lump sum or time basis only

Note some category factors have changed

Percentage fees for reinforced concrete revised (between SAACE and R1113)

Fees for structural steel separated out

Category Factor of 1,07 introduced on all fee scales for Targeted procurement



�� Z��qZZZcc�cc�cc&cC��	�S!��6FEES FOR NORMAL SERVICES& ..��	���Electronic fee scales a compromise between SAACE scales (small projects) and NDPW requirements (large projects)

Clause 26   table for proportioning the basic fee over the various stage

Clause 27   fees for additional services

Surcharge fees for cancelled projects 10% of total fee.  Abandonment after six months

NDPW will not accept the fees for site staff

Lead consultant fee 1% of total project cost

Percentage fee scales provided for engineering management fee


��q�qZtZ��qZ�qZ?�qZ�qZZqctc-cc�ccc��	�R��6FEES FOR NORMAL SERVICES& ..��	���Clause 28   time basis fee

Staff are now categorised as A B C D

Category C is now all professionally registered staff

Category D is now all other technical staff

New hourly rates are:

	Category A	22 cents/hour	   	R1 040-00
	Category B	22 cents/ hour		R   883-00
	Category C	17,5 cents/hour	R   496-00
	Category D	16,5 cents/hour	R   399-00

Clause 29   expenses and costs are now as per SAACE but at rates to be agreed.  The 50km radius no longer applies and travel time reduced by one hour per return trip.  Note:  NDPW will not pay for petty amounts e.g. phone calls, faxes, etc. 





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